Question Period Note: Supporting Businesses and Communities through the Regional Development Agencies

What investments does Budget 2021 propose to help create and sustain jobs through Canada’s Regional Development Agencies (RDAs

• As Canada builds back better, no community will be left behind. From the outset of the pandemic, regional development agencies have been on the ground across Canada, helping businesses weather the effects of the pandemic.
• Through the $2 billion Regional Relief and Recovery Fund, they have been providing liquidity to businesses, helping bridge them to the recovery, and preserving more than 125,000 jobs.
• Budget 2021 builds on this success with a number of new and expanded initiatives to support small businesses and communities, helping to position Canada for a strong recovery.
SUPPLEMENTARY MESSAGES

• It is proposed that the application deadline for support under the Regional Relief and Recovery Fund and the Indigenous Business Initiative be extended until June 30, 2021. Budget 2021 proposes to provide up to $80 million in 2021-22, on a cash basis, for the Community Futures Network of Canada and regional development agencies, and to shift remaining funds under the Indigenous Business Initiative into 2021-22, to support extended application deadlines until June 30, 2021.

• To ensure businesses in every corner of Canada have the support they need to get through the pandemic and that they are brought along in our economic recovery, the budget proposes to provide RDAs with $700 million over three years, starting in 2021-22, to support business financing. This would position local economies for long-term growth by transitioning to a green economy, fostering an inclusive recovery, enhancing competitiveness, and creating jobs in every corner of the country.
• Budget 2021 also proposes to create a new agency for British Columbia and to provide the new agency with $553.1 million over five years and $110.6 million ongoing to ensure businesses in B.C. can grow and create good jobs for British Columbians.
• Existing core program funding from Western Economic Diversification will remain to support the Prairies, making additional support available for businesses in Alberta, Saskatchewan, and Manitoba.
• The federal government will also work to make FedNor a standalone regional development agency and strengthen the economic development of Northern Ontario.
• The 2021 budget proposes to provide $500 million over two years, starting in 2021-22, to the regional development agencies for community infrastructure to stimulate local economies, create jobs, and improve the quality of life for Canadians from coast to coast to coast.
• Recognizing the RDAs’ ability and success in delivering funds quickly and effectively throughout the pandemic, the budget proposes a number of other important opportunities for RDAs to build on this potential, including, among others:
o $250 million over three years, on a cash basis, starting in 2021-22, for the regional development agencies to deliver an Aerospace Regional Recovery Initiative, which would support small and medium-sized firms in improving productivity, strengthening commercialization, and greening their operations and products.

o An additional $51.7 million over four years, starting in 2021-22, to Innovation, Science and Economic Development Canada and the regional development agencies for the Black Entrepreneurship Program.

Canada's regional development agencies (RDAs) are the front line for economic development in Canada and are instrumental in addressing key economic challenges by providing regionally tailored programs, services, knowledge and expertise.
RDA programs foster the right environment to enable businesses to grow and entrepreneurs and innovators to start businesses, creating the ideal conditions for the development of strong, dynamic and inclusive regional economies throughout the country.
Regional Development Agencies support regional innovation ecosystems and help businesses scale up by:
• delivering nationally coordinated programs tailored to fit regional needs and circumstances
• providing access to financial assistance
• bringing together key players in their respective ecosystems
• supporting community economic development
• ensuring that regional growth strategies eliminate regional gaps and align with federal government objectives
Current COVID supports administered through the RDAs

The following COVID 19 supports are administered by the RDAs:
• The Regional Relief and Recovery Fund (RRRF) provides over $2 billion in assistance to businesses and communities that may require additional support to cope with and recover from the pandemic. It has provided liquidity to businesses, helping bridge them to the recovery, and preserved more than 125,000 jobs.
The fund will help to:
o mitigate the financial pressure experienced by businesses and organizations to allow them to continue their operations, including paying their employees; and
o support projects by businesses, organizations and communities to prepare now for a successful recovery.
• The Regional Air Transportation Initiative (RATI) will provide $206 million to eligible regional businesses and airports that directly contribute to regional air transportation. RATI is designed to help ensure that regional air connectivity and services, which are critical to economic growth, are maintained and regional routes are re connected across the country. The fund is being delivered by Canada's 6 RDAs.
• The Canadian Seafood Stabilization Fund, a $62.5 million fund delivered directly through the Atlantic Canada Opportunities Agency, Western Economic Diversification Canada and the Canada Economic Development for Quebec Regions
It will help businesses access short-term financing to:
o increase storage capacity, and find storage solutions for unsold product
o adapt plant operations, and invest in equipment, services and materials to address challenges associated with COVID-19
o respond to changing markets and consumer needs

• The Northern Business Relief Fund provides eligible territorial SMEs affected by the economic disruptions due to COVID-19 with short-term relief for operational costs. This non-repayable grants range from $2,500 to a maximum of $100,000. The funding will cover a maximum period of four months, retroactive to April 1, 2020. This fund is delivered directly through the Canadian Northern Economic Development Agency.
Leveraging RDA capacity and building on important work
RDA COVID-19 programs complement other Government of Canada supports, including the Canada Emergency Business Account (CEBA) and the Canada Emergency Rent Subsidy (CERS), currently available to help Canadian businesses survive the impacts of the pandemic and positioned for eventual economic recovery.

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